LONDON, June 12 (Reuters) - Euro zone bond yields

dropped on Thursday as traders weighed the impact of the

previous day's soft U.S. inflation data and potential safe haven

flows on rising tensions in the Middle East.

Germany's 10-year bond yield, the benchmark for the euro

zone, dropped 4 basis points to 2.50%, its lowest in a week.

Yields around the world dropped on Wednesday after data

showed U.S. consumer prices increased less than expected in May

helped by cheaper petrol.

Bonds also rallied as investors sought safe havens after

U.S. President Donald Trump said U.S. personnel were being moved

out of the Middle East because "it could be a dangerous place".

The comments also sent oil prices higher on

Wednesday, however, complicating the picture for bonds.

Other euro zone bonds largely moved in line with the

benchmark. Italy's 10-year yield was down 3 bps at 3.43%.